JP Morgan Analysts Say Millennials Are “Flooding” Into Bitcoin Amid COVID-19 Pandemic

A recent note from American banking giant JP Morgan revealed that Bitcoin has become more attractive to millennials since the outbreak of the coronavirus (COVID-19).

While younger investors are flooding Bitcoin as a hedge against the pandemic-induced crisis, older people are more interested in gold and have been investing heavily in the metal rather than fiat, the bank analysts said.

Nikolaos Panigirtzoglou, the team leader, noted that both cohorts “show divergence in their preference for ‘alternative’ currencies.”  As such, both assets have experienced larger than ding volumes on both ends in recent times.

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The analysts further emphasized that while choosing to trade on stocks and in particular technological stocks, digital natives consciously avoid investing in bond and equity funds.

Comparing the rate at which younger folks invest and trade Bitcoin with the U.S. S&P 500 (Standard and Poors) market capitalization index trading volume from March till date, the bank noted:

“The simultaneous flow support has caused a change in the correlation pattern between bitcoin and other asset classes, with a more positive correlation between bitcoin and gold but also between bitcoin and the dollar as U.S millennials see bitcoin as an ‘alternative’ to the dollar.”

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Besides, there seems to be a significant shift for Bitcoin as an asset, pointing to last week’s trading volume as Bitcoin hits an all-time high of over $12,000, thereby attracting the investing power of younger generations to the Bitcoin market.

Just recently, Coinfomania reported that Jim Gaherity, the CEO of American coin-cashing machine company Coinstar, said that the reduction of human mobility by the COVID-19 pandemic has resulted in people looking out for digital payment solutions other than cash.